DOPL tells JFAC high turnover, excess board cash balances persist; seeks inspector pay increases and vehicle replacements

BOISE — Officials from the Division of Occupational and Professional Licenses (DOPL) told the Joint Finance-Appropriations Committee on Feb. 6 that the agency continues to grapple with high inspector turnover and excess cash balances among boards and commissions, and asked for targeted pay and equipment funding.

DOPL Administrator Russ Baron and Legislative Services analyst Kellen McGurkin presented background showing DOPL was created by House Bill 318 (2020) and now oversees about 45 boards and roughly 200,000–300,000 licensees, with the agency tracking approximately 267.2 FTP in its FY 2025 cap. McGurkin told the committee that DOPL’s receipts and transfers included roughly $50 million in transfers from prior board cash balances and about $30 million in new licensing revenues during the period shown in the packet.

Audit and cash-balance findings: April Renfro of Legislative Audit summarized DOPL’s open audit findings (November 2024) and said the primary open issue is excessive cash balances for several boards. The audit and agency responses use a reasonableness band based on five-year rolling averages: a low threshold around 30% of annual expenditures and a high threshold around 125% (the slide referred to percentages of 30% and 125% as reasonableness ranges). Renfro said DOPL has been providing reports on plans to reduce balances and she said auditors will continue follow-up work.

DOPL’s response and fee strategy: Baron told the committee DOPL is implementing fee reductions, proposing fee holidays and planning legislation intended to allow more rapid adjustments to board fund balances. The agency said fee changes take time to affect balances because of renewal cycles and recommended additional reporting tools and temporary exemptions to transfer limits to better align funding across bureaus while they continue to rebalance cash accounts.

Inspector pay, turnover and equipment requests: DOPL said it is requesting ongoing funding to increase pay for building inspectors and related trades inspectors. The agency requested $222,000 ongoing dedicated funds to increase pay for inspector positions by an average of $0.95 per hour across 92 FTP in the Bureau of Building, Construction and Real Estate, raising a stated starting wage for some trades inspectors from $27.50 to $28.60 per hour and adding a 2.5% compression adjustment in the request. DOPL reported high turnover rates for inspectors—ranging from 12% to 67% depending on program and year—and said vacancies can last up to eight months.

DOPL also requested $900,500 in one-time dedicated funds for vehicle replacements (detailed in the packet as 16 Ford F-150s for $648,000; five Ford Escapes for $165,000; one F-250 for $44,500; one Ford Explorer for $43,000), plus $146,401 one-time dedicated funds for hardware recommended by the Office of Information and Technology Services.

Licensing-system implementation: Baron said the agency implemented a new licensing system in phased releases (July and November) and reported improved customer service and efficiencies, including more “same-day” determinations when applicants submit complete information. McGurkin and DOPL staff said the new system also supports better cross-training and centralized processing across boards.

Committee follow-up: Senators and representatives pressed DOPL on where cash balances are growing and what boards are driving the increases. Auditor April Renfro and Administrator Baron said more detailed board-level reports and the agency’s plan (included in SharePoint and the audit appendix) outline steps to reduce excessive balances. Committee members requested copies of the plan and further detail about which boards hold the largest balances and why they are increasing.

Why it matters: DOPL is funded by dedicated and federal funds and its cash balances affect fee rates paid by licensees; the agency argued targeted pay increases are necessary to reduce turnover that impairs inspections and public-safety oversight.

Next steps: DOPL will continue to provide board-level cash-balance reports and implement fee and rule changes as allowable; the committee agreed to follow up with DOPL staff and auditors on progress and the effect of fee adjustments.